The coronation of Rishi Sunak as the third British Prime Minister this year has brought to an end four months of unprecedented crisis at the heart of British government, culminating in the calamitous collapse of market confidence in the wake of the mini-Budget on 23 September.

Dave Ramsden, Deputy Governor, Markets and Banking at the Bank of England, used a speech to the Securities Industry conference to discuss the recent shocks that have hit the UK economy.

The Bank of England’s enforced £65bn intervention to calm the stressed gilt market in the wake of the UK government’s unsettling “fiscal event” on 23 September has thrown a harsh, critical spotlight on liquidity.

Rarely can the managers of the UK’s huge institutional funds have been confronted with such uncertainty. This is not just the volatility seen in the wake of the global financial crisis, the Covid-19 pandemic or Russia’s unprovoked invasion of Ukraine. UK economic policy is embarking on a journey into the unknown.

Whoever emerges as the victor from the Conservative Party’s seemingly interminable leadership contest later this week will face an in-tray at Downing Street that will be overflowing with urgent government business.

The government threw the City a weighty tome of summer reading the day before MPs left Westminster for the summer when it published the long-awaited Financial Services and Markets Bill on 20 July.